The British economy suffered a surprise setback in June as industrial
production fell 0.5pc, official figures showed on Friday.

The slide, which confounded experts' forecasts of 0.2pc growth, was prompted by an early start to seasonal shutdowns in the oil and gas sector, the Office for National Statistics said.

The pound fell half a cent against the dollar as investors digested the news, despite assurances from the ONS that the data would not lead to a revision of second-quarter GDP figures, which showed the economy had strengthened by 1.1pc.

Oil and gas extraction fell 6pc from May as maintenance was carried out in June, rather than August, the ONS said.

Experts were also disappointed by a smaller-than-expected 0.3pc increase in manufacturing output – which excludes mining, oil, gas and utilities – in June.

Industrial production for June is up 1.3pc on the year, with manufacturing 4.1pc higher, but fears remain of a slowdown in the second half of the year as the coalition's savage deficit-tackling cuts kick in.

"The suspicion going forward is that manufacturing will lose momentum," Howard Archer, economist at IHS Global Insight, told Reuters. "There are hints that the second quarter may have been the peak of manufacturing activity. And certainly the inventory adjustment will probably soon come to an end."

David Kern, chief economist for the British Chambers of Commerce, told PA: "There is no room for complacency. The recovery is not yet secure, and we are now seeing worrying signs that the global economy is slowing down.